Chart of the day: Offshore yuan on the move
Like its onshore cousin, a gentle rounded bottom has been forming for the offshore yuan since March and happens to catch trend-line support (from late 2015) rather well. This also aligns with the 200-day moving average while the Ichimoku averages (nine- and 26-day) have crossed to bullish. All these suggest we are about to move up another notch. Cloud resistance at 6.5475 might stall proceedings briefly, but watch for a break above the late February high of 6.5585 as this might set off a bout of short-covering. Note that both momentum and the MACD have been clearly bullish since mid-April and that the US dollar is currently not overbought against the yuan. The target could be 6.62.
Nicole Elliott is a technical analyst